The good news? Those harbor truckers who are under union have a big plus when it comes to planning on retirement.
Here’s how joining a union can help secure your financial future with well-structured pension and retirement plans:
1. Defined-Benefit Pension Plans
Today many harbor truckers unions provide their workers with defined-benefit pension schemes.
These plans ensure you receive a predetermined amount of money every month upon your retirement
depending on your wages and number of working years. Defined benefit pension plans is one of the
best retirement benefit schemes because it assures a fixed income in retirement thus eradicating the challenge that comes with saving for retirement on personal deviance.
For instance, if you have been a union member and working under the union negotiated contract for
some years you would be entitled to a union pension that paid you and your spouse a monthly check till death.
This financial security can provide financial freedom; the kind of comfort that comes with the knowledge that
you and your spouse will never have to worry about where the next check is coming from after you are done working.
2. Employer Contributions
In union jobs for instance, you are usually expected to pay something towards your pension and your employer
matches this on your behalf. This means that your employer contributes to your retirement without having a
cut on your wage or salary that you receive. When put together, they make a substantial amount that goes towards the building of a good retirement kit.
On the other hand, non-union truckers have to rely on personal pockets or make contributions to their
retirement schemes from their own income since their employer is unwilling or cannot afford to meet the
costs, not forgetting the expenses they need to meet now. What is good about contributions in the workshop
particularly in the union jobs is that the employer is partly relieved of this responsibility.
3. Defined Contribution Plan: 401(k) Plan and Other Retirement Savings Vehicles
Besides having defined benefit pension plans, most unions provide union members with
participation in 401(k) or any other acceptable type of retirement scheme. They enable you
to save part of your income in an employee retirement plan with the employer contributing
up to a specific ratio. When contributions are made through an employer and personal contributions are made to a 401(k) the total accumulation of the two ultimately increases your retirement portfolio.
For instance, your union contract avails a 401(k) plan with employer match; where you contribute 5% of your salary, the employer doubles contribution in essence. This is a good method to build up your retirement fund while still giving the predictability a defined/benefit pension strategy.
4. Health Benefits in Retirement
Most of the union pension plans also have other special features such as continued participation in health care plans after retirement. Truckers can benefit from having their own policy, largely because the price of medical services increases when you get older. These costs can be greatly offset and managed, and you will get the necessary medical check that you need most especially when you’re out of work and out of retirement by having a healthcare coverage through union.
Non-union truckers usually do not get proper medical care after they reach a certain age unlike the unionized truckers who are able to get it from their employer provided health cover, most non-union truckers are then left with having to look for an individual health insurance which is very expensive or Medicare cover. It is therefore important for union members to enjoy union health benefits, to enable easy access to quality health care throughout their elderly years.
5. Retirement Planning Support
Most unions also provide financial planning services so you can best prepare your pension, your 401(k), and the rest of your financial life. Union representatives can provide you with an understanding on how your pension plan works or the best ways to get the most out of your retirement, or any other savings plan. This support can prove to be of immense value particularly to truckers many of whom do not have the time or the tools to engage in research with a view to identifying ideal retirement products.